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Smoke free Europe

The trend has started and many countries in the EU are finally getting serious about banning smoking in public places. It was Ireland that became the first country in the world to ban smoking in all workplaces, including bars and restaurants, which has huge negative effects on sales - plunging profits down. This comes to no surprise as these types of establishments already attract smokers – who in respect strongly expect these places to be their getaway smoking retreats.

Medical organizations are pressing and national governments around Europe are finally getting serious about tackling tobacco. Norway and Malta have already followed Ireland's lead, and Sweden is already in the process. Britain is expected to announce its own regulations, which industry observers predict will outlaw smoking in restaurants and pubs that serve food. Even in France, where restaurants seem as indelible a partnership as croissants and coffee, enforcement of a largely ignored restriction on indoor smoking has been stepped up.

Commercially, cigarette sales in Europe, excluding heavy smokers Greece and Portugal, have fallen 6.3% in the past two years, says British researchers, and they are expected to drop an additional 6.4% by 2009. They say there has been a recent shift in public opinion against smoking, whereby more people than ever are aware that passive smoking can kill, and that more countries will start cracking down on it to prevent further health risks.

Not only are bans tactics being used by the politicians, but the EU called on governments to put gruesome pictures of cancerous growths and blackened lungs on cigarette packs. Many countries are using tax hikes to suppress sales. Germany added 32 cents a pack in levies in March 2004, bringing the average price of a pack of smokes to $4.90, and will hike taxes by the same amount in December and then in September, 2005.

But higher taxes don't always have the expected results. In France, tax hikes to cover a hole in the social security budget have raised the price of an average pack by 39% over the past two years, to $6.40. That has led to a 30% plunge in cigarette sales, but not an equivalent decline in smoking, as consumers turn to the Internet, cross-border, and black-market sources.

The future of smoking in Europe looks to be heading in a “clearer” direction. Although it doesn’t mean that the success of it’s campaignes and other means of smoke-free regulations will predict a business stability in bars and restaurants – if eventually any at all.

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Wärtsilä Norway AS
Wärtsilä Norway AS
Wärtsilä Norway AS
 

 


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